Kazakhstan is preparing to establish a national cryptocurrency reserve fund worth between $500 million and $1 billion, a landmark step that could make the Central Asian nation one of the first to integrate digital assets into its sovereign wealth strategy.
The fund will be seeded with assets seized or repatriated from abroad, along with proceeds from state-backed bitcoin mining operations.
Central bank governor Timur Suleimenov said in London this week that the fund will invest “very carefully” through regulated instruments such as exchange-traded funds (ETFs) and shares of companies involved in digital finance, rather than holding cryptocurrencies like bitcoin directly.
The initiative, slated for launch by early 2026, represents Kazakhstan’s most concrete move yet to institutionalize its crypto strategy after years of experimenting with mining and tightening control over private operators.
Officials said the program will be managed under the Astana International Financial Centre (AIFC) — the country’s fintech hub — and may eventually include foreign investment partners.
Kazakhstan’s plan to turn seized assets into strategic capital
Plans for a state-run crypto fund first surfaced in 2024, when the country’s Agency for Financial Monitoring proposed consolidating confiscated wallets and mined tokens into a national reserve.
The goal, according to officials, was to “repurpose illicitly obtained digital assets” to strengthen Kazakhstan’s economic sovereignty.
By transforming seized or idle crypto holdings into a structured investment pool, Kazakhstan aims to turn what was once a compliance challenge into a source of growth and diversification.
The model echoes similar efforts in the U.S. and Europe, where seized crypto has increasingly been managed through regulated channels.
The U.S.’s crypto reserve, created under a March 2025 executive order, serves as a strategic stockpile of government-owned digital assets — mainly Bitcoin — acquired through forfeiture proceedings.
Rather than purchasing new cryptocurrencies with taxpayer funds, the initiative focuses on managing these existing holdings to support national interests and strengthen America’s leadership in the digital asset space.
A push beyond oil
For decades, Kazakhstan’s economy has relied heavily on oil exports, leaving it vulnerable to commodity cycles. President Kassym-Jomart Tokayev has championed economic reforms to reduce that dependence and push the nation toward technology, innovation, and digital finance.
The crypto reserve fund aligns with that vision. By focusing on ETFs and blockchain-linked equities, the central bank hopes to gain exposure to bitcoin’s upside while avoiding the custodial and volatility risks of holding tokens outright.
The fund also dovetails with broader ambitions to turn Kazakhstan into Central Asia’s leading fintech center. The government’s flagship “Alatau CryptoCity” project — envisioned as a testing ground for blockchain startups and crypto-based payments — will complement the reserve fund.
Source: https://bitcoinmagazine.com/news/kazakhstan-plans-1-billion-national-crypto
